The Albanese government is considering ways to limit China’s investment and influence in Australia’s $20bn critical minerals industry, which is crucial for defence, space and communications equipment, on the grounds of Australia’s national security.A decision on the extent of limits on China’s investment in Australian critical mineral mines and infant processing industry will be based not on economic grounds but using national security powers. The examination of limits follows Canada’s recent order to Chinese companies to divest shares in lithium producers in the “national interest”.Restrictions or bans on China buying shares in Australian critical minerals or being forced to divest are part of the government’s decision to be “more assertive” on foreign investment in the “national interest”.
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